Paramount Communications Q2 FY27 results: net profit up 82.9% to ₹24.24 crore, revenue up 30.9%

How did Paramount Communications perform in Q2 FY27?

Paramount Communications reported consolidated revenue of ₹560.40 crore for the July–September 2026 quarter, up 30.9% from ₹428 crore in Q2 FY26 and 5.9% from ₹529.40 crore in Q1 FY27. EBITDA was ₹40.91 crore, up 17.8% from the previous quarter, and the EBITDA margin increased to 7.3% from 6.6% in Q1 FY27 and 1.4% in Q2 FY26.

Consolidated profit before tax rose to ₹32.39 crore from ₹19.70 crore in Q1 FY27 and ₹17.80 crore in Q2 FY26. After tax of ₹8.15 crore, the company reported a net profit of ₹24.24 crore and basic EPS of ₹0.74, compared with ₹19.70 crore and ₹0.64 in the previous quarter. The standalone result was also revenue of ₹560.40 crore and net profit of ₹24.24 crore.

What changed in Paramount Communications' costs and profit?

Total expenses increased by ₹101.97 crore from Q2 FY26 to ₹531.81 crore, with cost of materials up ₹119.43 crore, employee cost up ₹2.21 crore, finance costs up ₹3.78 crore and depreciation up ₹0.50 crore. Other expenses declined by ₹10.31 crore. There was no exceptional item in either quarter.

Other income fell by ₹15.84 crore to ₹3.80 crore from ₹19.64 crore in Q2 FY26. Tax expense increased by ₹3.60 crore to ₹8.15 crore, from ₹4.55 crore. Despite the lower other income and higher costs, EBITDA rose by ₹34.71 crore and profit before tax increased by ₹14.59 crore.

Against Q1 FY27, total expenses rose by ₹25.86 crore, led by cost of materials at ₹3.90 crore, other expenses at ₹5.25 crore, employee cost at ₹0.86 crore and finance costs at ₹1.03 crore. Depreciation was unchanged at ₹4.43 crore, while other income increased by ₹0.71 crore and tax rose by ₹1.31 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹1,089.80 crore, up ₹210.68 crore or 24.0% from ₹879.12 crore in H1 FY26. Total income rose 19.7% to ₹1,096.69 crore from ₹916.47 crore.

Profit before tax increased by ₹15.94 crore or 37.1% to ₹58.93 crore from ₹42.99 crore. Net profit rose by ₹12.19 crore or 38.4% to ₹43.94 crore, while basic EPS increased from ₹1.04 to ₹1.38.

What do the balance sheet and cash flow show?

Total assets increased to ₹1,248.59 crore at 30 September 2026 from ₹1,128.65 crore at 31 March 2026. Total equity rose to ₹920.01 crore from ₹778.07 crore, while borrowings increased to ₹131.96 crore from ₹115.77 crore and cash and cash equivalents rose to ₹10.33 crore from ₹4.76 crore.

Inventories increased to ₹329.46 crore from ₹284.91 crore, trade receivables fell to ₹394.79 crore from ₹413.40 crore, and trade payables declined to ₹142.49 crore from ₹196.61 crore. Bank balances other than cash and cash equivalents were ₹49.13 crore, compared with ₹28.35 crore previously.

H1 FY27 operating cash flow was negative ₹31.89 crore, compared with negative ₹56.28 crore in H1 FY26. Investing cash flow was negative ₹61.99 crore against negative ₹24.33 crore, while financing cash flow was ₹99.45 crore against ₹61.12 crore. Capital expenditure was ₹41.30 crore, compared with ₹25.05 crore a year earlier.

How has Paramount Communications done over the last 8 quarters?

Revenue reached a period high of ₹573.31 crore in Q4 FY26 before declining to ₹529.40 crore in Q1 FY27 and recovering to ₹560.40 crore in Q2 FY27. The year-ago low was ₹428 crore in Q2 FY26. Paramount Communications has now recorded year-on-year revenue growth in each of the last eight quarters.

Net profit bottomed at ₹7.48 crore in Q3 FY26 and rose to ₹20.52 crore in Q4 FY26, before easing to ₹19.70 crore in Q1 FY27 and increasing to ₹24.24 crore in Q2 FY27. The period high was ₹24.24 crore. Profit has risen year on year in each of the last three quarters.

The EBITDA margin fell to 1.4% in Q2 FY26 and then recovered to 7.3% in Q2 FY27 from 6.6% in Q1 FY27. Its period high was 8.6% in Q3 FY25, while the period low was 1.4% in Q2 FY26.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026, together with the statutory auditors’ limited review report. The same-day investor presentation set out the company’s capacity expansion and FY27 roadmap. No dividend, fund raise or appointment was stated in the cited filings.

What did Paramount Communications' management say?

Management reiterated FY27 revenue growth guidance of 15%-20% from previous-year sales and said the target was comfortably in sight. It targets an operating margin of around 8% by Q4 FY27 and expects U.S. exports to contribute 25%-30% of FY27 revenue, approximately INR 700 crore. Chairman and CEO Sanjay Aggarwal said the company remained focused on reaching revenues of INR 5,000 crore by FY31.

Management said the Narmadapuram plant would be partially commissioned in Q1 FY28, contribute approximately INR 500 crore in FY28 and INR 1,200 crore in FY29, and add approximately 30,000 metric tons by FY30. It also said the HTLS order book exceeded INR 200 crore within an internally assessed market of INR 50,000 crore.

Management identified metal-price volatility, changes in U.S. trade policy, delays to Narmadapuram commissioning and qualifications, longer execution periods for HTLS orders including EPC installation, and working capital of 108 days as risks. It maintained a 90-100 day working-capital target and a debt-to-equity ceiling of 0.6-0.7.

How did Paramount Communications shares react?

After the filing, the stock rose 1.3% within five minutes, 6.6% within 15 minutes and 7.2% within 30 minutes. It closed 8.5% above the previous close on the reaction day. By the next day’s close, the cumulative gain from the pre-results close was 5.3%, and by the fifth session it was 1.8%.

The Cables - Electricals industry median moved 2.2% on the reaction day, 1.1% by the next day’s close and negative 0.4% by the fifth session. Paramount Communications exceeded the industry median by 6.3 percentage points on the reaction day, 4.2 percentage points by the next day and 2.2 percentage points by the fifth session. The Nifty Microcap 250 rose 1.7% on the reaction day and 1.8% by the next day’s close.

Earlier reaction-day moves were negative 2.8% on 14 August 2026, positive 10.6% on 22 May 2026, negative 2.1% on 12 February 2026 and negative 2.6% on 13 November 2025. The preceding moves on 13 August 2025 and 21 May 2025 were negative 9.0% and negative 8.3%, respectively.

How did other Cables - Electricals companies do?

Five other Cables - Electricals companies that had filed for the quarter were compared with Paramount Communications. Their median revenue growth was 38.5%, and three grew faster than Paramount Communications while two grew more slowly than the company.

Four peers reported higher profit, while profit was compared for four peers. The peer figures were available as of 4 November 2026, while Paramount Communications’ Q2 FY27 revenue growth was 30.9%.